Do You Have a Strong Value Proposition?
Your value proposition is a clear statement of the tangible business results a customer receives from using your
products or services. It answers these questions for prospective customers: “How can you help my business? What
difference do you make?”
Strong value propositions stress tangible results like:
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Increased revenues
Faster time to market
Decreased costs
Improved operational efficiency
Increased market share
Decreased employee turnover
Improved customer retention
Here’s what a good value proposition sounds like:
“Industry research shows that a jet uses up to 5,000 gallons of diesel fuel/day. The airline industry spends $43
billion/year on fuel. Our new kadiddle could save your airlines up to $4 billion in fuel costs each year.”
A CFO would be irresponsible not to learn more.
So, how’s your proposition?
You have a weak value proposition if you start your pitch with descriptions of features and capabilities, or if you try
to impress with self-aggrandizing puffery.
Can you describe what you do in terms of tangible business results? Do you have documented success stories?
Or do you need to do some work to enhance your value proposition? If it's not strong enough yet, don't despair.
Most people and rep firms have a much stronger one than they use. They just get caught up in describing "what"
they make or "how" they do things.
Here are several steps you can take to enhance your value proposition:
1. Use Numbers
Tangible value is typically expressed in numbers, percentages, and time frames. Think of ways you could quantify
your offering. For instance, it could:
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Cut labor costs by 25%
Save $100,000 in manufacturing costs
Improve productivity by 37%
Reduce customer complaints by 30%
Increase margins by 9%
You need to be explicit and use actual numbers. “We help you increase sa1es” won’t impress anyone. Tell a real
success story that includes metrics.
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How much did sa1es go up?
What kind of savings were realized?
How much did you lower the cost of goods sold?
What was the financial impact of the time saving?
2. Use Industry Statistics
Some of you are probably panicking by now. No statistics or metrics, right?
Well, you're not alone. Sometimes it's difficult to measure your impact. Sometimes customers hate tracking things.
Sometimes what you're doing is so new that no one has numbers.
Keep your eyes open for relevant metrics and use industry research someone else has done. Use trade
publications, the business section of your newspaper, the internet…you know how to do this.
If you search hard enough you will have a 99.97% chance of finding statistics that support your sa1es efforts.
3. Brainstorm with Your Colleagues
Review with your marketing materials and your ways of getting attention with other reps in your firm and your
manager. If you're not talking tangible results, they can help you strengthen your value proposition by asking, "so
what?" questions.
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So what if you are a one-stop shop?
So what if it’s an efficient system?
So what if your products are environmentally friendly?
So what if you can custom-engineer products?
So what if it's high quality?
By answering “so what?” over and over again, you'll get much closer to the real value you bring to customers.
If you're a sole proprietor, do this exercise with a group of other small business owners.
4. Talk to Your Customers
Your existing customers are your best resource to find out what value you bring. Ask for their help in giving their
opinion on the real value of your offering.
Most people are scared to approach their customers in this way. It took me some time before I was willing to take
the risk, but what I learned was a real eye-opener. Not only did their answers change my value proposition, but they
also changed my offerings and self-perception.
5. Engage New Customers in Measurement
That's right! You can ask your customers to create a benchmark. If you're confident that your product or service will
deliver positive business results, ask them to measure what you deliver. Here’s how:
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Ask your customers to define what success looks like how will they know that things are changing?
Ask them how they would measure it
Ask them how they would like to report the results will they write something up? Will they report it to you
and you write it up?
Some customers really like to do this. They want to see if their investment in your offering truly did make a
difference. And if it did, believe me, they will be telling everyone in the company about their great decision-making!
Once you can offer hard proof of your impact, your value proposition will be much stronger. In fact, it will be just
what you need to get your foot in the door of a whole new collection of prospects.